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The 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. As of today (2026-09-21), Rocket Lab's 3-Year Sortino Ratio is 2.90.
Rocket Lab (NAS:RKLB) 3-Year Sortino Ratio Explanation
The 3-Year Sortino Ratio inidicates the risk-adjusted return of an investment over the past three year. It is calculated as the annualized result of the average three-year monthly excess returns divided by the standard deviation of negative returns in the three-year period. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
Differnt from the Sharpe Ratio that penalizes both upside and downside volatility equally, the Sortino Ratio penalizes only those returns falling below a user-specified target or required rate of return. The expected returns here is set to the risk-free rate as well.
Rocket Lab 3-Year Sortino Ratio Related Terms
RKLB vs HEI.A, AXON, LHX: 3-Year Sortino Ratio Comparison
For the Aerospace & Defense subindustry, Rocket Lab's 3-Year Sortino Ratio, along with its competitors' market caps and 3-Year Sortino Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rocket Lab 3-Year Sortino Ratio vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rocket Lab's 3-Year Sortino Ratio distribution charts can be found below:
* The bar in red indicates where Rocket Lab's 3-Year Sortino Ratio falls into.
The 3-Year Sortino Ratio measures the risk-adjusted return of an investment asset or portfolio in the last three year, focusing specifically on downside risk rather than total risk. A stock / portfolio's 3-Year Sortino Ratio can be calculated by dividing the difference between the three-year average monthly returns of the investment and the risk-free rate, by the standard deviation of the downside risks over the past three year.
A downside risk is a potential loss from the asset or investment. The Downside risk here is measured by the downside deviation, which is the standard deviation of negative returns.
Rocket Lab (RKLB) has a 3-Year Sortino Ratio of 2.90 as of Sep. 21, 2026. 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. View historical data for Rocket Lab and its competitors.
Is Rocket Lab's 3-Year Sortino Ratio too high?
Rocket Lab's current 3-Year Sortino Ratio is 2.90. Overall, Rocket Lab has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rocket Lab's 3-Year Sortino Ratio compare to HEI.A and AXON?
Rocket Lab's 3-Year Sortino Ratio of 2.90 can be compared against companies in the Aerospace & Defense industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year Sortino Ratio for an Aerospace & Defense company?
A good 3-Year Sortino Ratio depends on the Aerospace & Defense industry context. However, 3-Year Sortino Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year Sortino Ratio mean?
A high 3-Year Sortino Ratio can signal that a stock is expensive relative to its fundamentals. 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. View historical data for Rocket Lab and its competitors. Rocket Lab's current 3-Year Sortino Ratio is 2.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rocket Lab stock overvalued right now?
Based on GuruFocus' analysis, Rocket Lab (RKLB) is currently considered Significantly Overvalued. The stock's GF Value™ is $38.38, compared to a current price of $69.48 — trading 81% above its estimated fair value. The current 3-Year Sortino Ratio is 2.90. Rocket Lab's overall GF Score™ is 77/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year Sortino Ratio calculated?
3-Year Sortino Ratio is calculated from a company's financial statements. For Rocket Lab (RKLB), the current 3-Year Sortino Ratio is 2.90 as of Sep. 21, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rocket Lab (RKLB) Overvalued in 2026?
Based on GuruFocus' analysis, Rocket Lab stock appears to be overvalued.
The current stock price of $69.48 is trading 81% above its estimated GF Value™ of $38.38.
GuruFocus considers Rocket Lab to be Significantly Overvalued.
Key valuation signals for RKLB:
3-Year Sortino Ratio: 2.90
GF Value™: $38.38 vs. price of $69.48 (81% above fair value)
No single metric tells the full story. See the RKLB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rocket Lab Corp is engaged in space, building rockets, and spacecraft. It provides end-to-end mission services that provide frequent and reliable access to space for civil, defense, and commercial markets. It designs and manufactures the Electron and Neutron launch vehicles and Photon satellite platform. Rocket Lab's Electron launch vehicle has delivered multiple satellites to orbit for private and public sector organizations, enabling operations in national security, scientific research, space debris mitigation, Earth observation, climate monitoring, and communications. The business operates in two segments Launch Services and Space Systems. Geographically it serves Japan, and rest of the world and earns key revenue from the United States.
77GF Score
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3-Year Sortino Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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